Enron Corporation, a major billion dollar company, was thriving at its highest level back in the year of 2000. Enron employed approximately 22,000 associates and was named “America’s most innovative company” by Fortune. However, under all of the bliss, revealed was a substantial amount of corporate fraud and corruption. The Enron scandal involved both illegal and unethical activity. Enron’s executive chose deception of the stakeholders and short-term financial gains for themselves. They were willing to destroy their personal and business reputations, as well as their social standings. The reason for this paper is to show that Enron valued making money above everything else, which lead to unethical behavior. Enron executives were motivated by greed of money, arrogance, pride, and self-interest. The executives of Enron pushed everyone to do whatever they had to do to make money or to make it appear as if money was being made. They were overly confident of their distorted perceptions and when challenged regarding the accurateness of the numbers they would retaliate against the accusers. Ken Lay the chairman of Enron was very greedy; it was money that motivated him, this caused him to ignore any complaints. When two traders were betting on the oil markets, resulting in high profits, Louis Borget was found to be diverting money into an offshore account. Lay ignored the negative feedback thereby, diminishing the capacity for ethical awareness encouraging them to continue, because it was making the company millions. However, once discovered they had actually gambled away Enron’s reserve they were fired. The greed, dishonesty, arrogance, selfishness, hypocrisy, disrespects and injustice that characterized top Enron executives’ intentions discloses their culpable motives and the corrupting workplace culture they created (Sennett 1998). The executives of Enron used political lobbying to affect deregulation by eliminating any governmental feedback of...

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...CASE STUDY
ON
ENRONCORPORATEFRAUD (2001)
Submitted by:
AMIT SHARMA
PGDM (016)/09-11
What is FRAUD?
In the broadest sense, a fraud is an intentional deception made for personal gain or to damage another individual. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and is also a civil law violation. Many hoaxes are fraudulent, although those not made for personal gain are not technically frauds. Defrauding people of money is presumably the most common type of fraud, but there have also been many fraudulent "discoveries" in art, archaeology, and science.
Types of FRAUD:
* Fraud as a criminal act
* Fraud for profit
* Marriage fraud
* Academic fraud
* Fraud as tort
Elements of fraud:
Common law fraud has nine elements:
1. a representation of an existing fact;
2. its materiality;
3. its falsity;
4. the speaker's knowledge of its falsity;
5. the speaker's intent that it shall be acted upon by the plaintiff;
6. plaintiff's ignorance of its falsity;
7. plaintiff's reliance on the truth of the representation;
8. plaintiff's right to rely upon it; and
9. consequent damages suffered by plaintiff.
CORPORATE CRIME:
In criminology,...

...FINANCIAL ACCOUNTING
REACTION PAPER – THE ENRON SCANDAL
FACTS OF THE CASE
EnronCorporation was formed in 1985, led by Kenneth Lay, as a result from the merger of Houston Natural Gas and Internorth that specializes in natural gases and commodities. In 1990, the company hires Jeffrey Skilling to lead the trading of commodities under deregulated market and Andrew Fastow later that year (USA Today, 2002). Deregulation of the energy markets allowed companies to place bets on future prices, and Enron was poised to take advantage (Investopedia.com). Skilling developed a staff of executives that, by the use of accounting loopholes, special purpose entities, and poor financial reporting, were able to hide billions of dollars in debt from failed deals and projects (Wikipedia). The expose started on August 2001 when Sherron Watkins, an Enron Vice president, write and meet with Mr. Lay expressing concerns about Enron’s accounting practice to result to “Implode in wave of accounting scandal” and on October 2001, Enron reported a third quarter loss of $618 million and solicited help from the US government official which includes the Federal Reserve chairman, Alan Greenspan, Treasury Officer Paul H. O’Neil but they did not succeed on getting any help. (New York Times, 2013). In November 2001, Enron admitted it overstated its profits dating back to 1997 at $600M and agreed to be...

...CorporateCorruption
In today's world it is all too prevalent to see more and more people hungry to gain success at an ever-increasing rate. Modern culture can and indeed is labelled greedy' and thoughtless'. Through my relatively short time spent in business, I have encountered many of these types of people. But who are they hungry for? Who benefits from their thoughtlessness, and why do they do what they do? More importantly, who is to blame when things don't go according to plan?
These are all questions asked constantly in the business domain, questions that often seem to include the word ethics' in their answer. Whether we look to consequentialism and always consider the outcome of a particular action, or conform to a more deontological form of ethical thinking and focus on always acting in a manner that seems right', I believe that a person cannot always be 'ethical', all of the time. If it were that easy, ethics would be a very small area of study.
So what does the word 'ethical' mean? To me, it is to take into account every aspect involved in any given situation, peoples' feelings, thoughts and well-being, both now and in the future, and act as best one can to achieve the most satisfactory outcome for all concerned. From my viewpoint, acting in an ethical manner comes from each and every individual, each having learned from the environment in which they have grown and developed. Should the judgement, therefore, always be left...

...VALUES AND ETHICS
ASSIGMENT: FRAUD AND CORRUPTION
TABLE OF CONTENTS
Introduction……………………………………………………………...3
Ethical issues………………………………………………………….....3
Impact on organization………………………………………………....3
Measures to be enforced………………………………………………..4
References………………………………………………………………6
INTRODUCTIONFraud and corruption is one of the biggest issues that the society is facing and is also one of the most challenging issues that have yet to be tackled worldwide. Organizations end up losing a lot of profits due to the scrupulous nature of its employee’s fraudulous activities. Fraud and corruption is like a cancer, it can spread everywhere, it can be done to people, by people and people always end up suffering. It requires the effort of all individuals to curtail it.
Ethical issues identified
The organization is made up of different ethnic and cultural groups, employees tend to owe allegiance to members of their own community. This normally occurs mostly during the recruitment process whereby the interviewer selects a relative to take up a position for which he or she is not qualified and end up discriminating the rest of the qualified applicants thus promoting corruption in the organization.
Some people lack integrity thus...

...﻿
UNIVERSITI MALAYSIA PERLIS
SCHOOL OF BUSINESS INNOVATION & TECHNOPRENEURSHIP
BFT 503 businesss ethics & csr
NAME : NUR AINUL MARDHIAH BINTI
MD. ZULKIPLI
MATRIC NO : 1333430136
Dr. Abdullah bin osman
Enron : Questionable Accounting Leads To Collapse
History
ENRONCORPORATION. Enron, a corporation headquartered in Houston, operated one of the largest natural gas transmission networks in North America, totaling over 36,000 miles, in addition to being the largest marketer of natural gas and electricity in the United States. Enron managed the world's largest portfolio of natural gas risk management contracts and pioneered innovative trading products. The company was on Fortune's "Most Innovative" in the United States listing for several years running and reached #7 on the Fortune 500 list in 2000. Its bankruptcy in December 2001 was the largest such filing in United States history. The name Enron became synonymous with corporate greed and corruption, and its demise cost investors and employees over $70 billion in lost capitalization and retirement benefits.
Enron was formed by a merger between Houston Natural Gas (HNG) and InterNorth. HNG was formed from the Houston Oil Co. in the 1920s and provided gas to retail customers in Houston. In 1976 it sold its retail gas business in Houston to...

..."CorporateFraud" when you hear those words the first, most recent incident, many think of is The Enron Scandal. This same scandal produced the Public Company Accounting Reform and Investor Protection Act of 2002. This much needed act created the Public Company Accounting Oversight Board under the Security Exchange Commission's supervision. This board sets accounting standards and investigates Certified Public Accountants and companies to ensure they are following the guidelines set forth. This board has also been given the authorization to fine, suspend and recommend criminal investigations in the event CPA's and their firms violate the standards. (Lindstrom) To understand the stringency of this Act is to recognize what brought it about.
Many, like myself, barely followed along on the nightly CNN reports about a billion-dollar company who filed fraudulent financial statements for five years, Enron. We are used to hearing about such things happening. Companies go bankrupt everyday. Yet, the Enron scandal hit the financial world so hard that it unnerved the faith the American people had in our economic system. The lack of investing ripped the stock market, which has dropped $200 billion since the December 2001 when the company filed Chapter 11. (Saporito) This crash was noted as the most stunning bankruptcy in history.
Enron was originally a gas pipeline company. When the...

...﻿FINAL PROJECT – CORRUPTION IN INDONESIA
Before we discuss about corruption in Indonesia, first we must know what corruption itself is. In a common view, corruption is misused money which causes a deficit for the country itself. But, corruption itself has a broader meaning beside that, corruption itself come from the word “corrupt” which also mean defective. A misused of power can also be a definition of corruption. Based from oxford dictionary, corrupt has a meaning of “having or showing a willingness to act dishonestly in return for money or personal gain”.
Corruption in Indonesia is already going from Ir. Soekarno era. Even though Ir. Soekarno is well known as a great leader and a great orator, he ever did a corruption which caused him to be overthrown from his era in Indonesia. Corruption which he did is proclaiming himself as a lifetime President of Indonesia. Based on the previous constitution of Indonesia, this action is defying the constitution itself where Republic of Indonesia first is proclaimed as a Republic, and by changing into having a single leader for a lifetime means that Indonesia won’t be a Republic anymore, but Indonesia become a capitalism country. Indonesia have law number UU 31/1999 and UU 8/2010 money laundering, its about the corruption and money laundering.
Based on World Justice...

...Corruption in any form is treated as an incurable disease, a cause of many social and economical evils in the society and it damages the moral and ethical fibres of the civilization. Indisputably, it is correct that corruption breeds many evils in the society and once corruption starts taking place, slowly and gradually whole country passes through its net and it becomes after sometime an incurable disease. From the point of view of economic growth, there seems to be no clear cut correlation between corruption and the economic growth of a country. There may be presence of some social maladies like inequality of income among the people, moral degradation of people due to the prevalence of corruption, but the parameters of economic growth which are taken on percentage or an average basis are entirely different.
we can find several countries having corrupt regime but yielding excellent economic results and other countries with clean regime showing very poor results in terms of economic prosperity and growth.
Transparency International publishes every year lists ranking corruption in various countries. It has just come up with a list of the 10 most corrupt rulers. The list is not given . It can be viewed on the internet. It is against the policy of this site.
This list is neither complete nor exhaustive. Saddam Hussein and his cronies might have skimmed more than some of the above...